Buy-to-let mortgage arrears drop 6% year-on-year

Buy-to-let mortgage arrears drop 6% year-on-year

Todays other news
The new analysis comes from Knight Frank...
The activist group wants far more tenant power than given...
Many lenders decline properties with this foam - making them...
The briefing, held this week, aimed to bring letting agents...


There were 4,420 buy-to-let mortgages in arrears of 2.5% or more of the outstanding balance in the first quarter of 2020, 6% fewer than in the same quarter of 2019, according to the latest mortgage arrears and possessions figures from UK Finance. 

Within that total, there were 1,170 buy-to-let mortgages with more significant arrears (representing 10% or more of the outstanding balance). This was 3% down on the corresponding quarter last year.

Despite the annual fall, the data shows that buy-to-let arrears increased marginally in Q1 2020 from 4,390 in the previous quarter. 

Callum Bilbe, analyst, data & research at UK Finance, said: “While we did see a modest increase in arrears from Q4 2019 to Q1 2020, this rise relates to the very earliest effects of the Covid-19 outbreak at the start of March, with the payment holiday scheme being introduced shortly after this, helping to prevent further payment issues for borrowers who might be struggling.”

The first quarter of 2020 saw 640 buy-to-let mortgaged properties taken into possession, which is an 8% increase on the same quarter last year.

Jackie Bennett, UK Finance senior advisor, mortgages, said: “While the number of mortgages in arrears are down 6% year-on-year for both homeowners and landlords, and the number of possessions down 23% for homeowners, lenders know that coronavirus is currently causing financial difficulty for many customers.

“That’s why the banking and finance industry is working hard to support people during this difficult time, including providing more than 1.6 million mortgage payment holidays and introducing a three-month moratorium on any possessions.”

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Landlord Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Recommended for you
Related Articles
Many lenders decline properties with this foam - making them...
The number of first-time buyers hit 341,068 last year, up...
The lender says the buy to let sector is resilient...
Rates for these types of mortgages are at their lowest...
The tenant was in hospital when he was evicted illegally...
The controversial proposal is backed by the Welsh Government...
Growing arrears, falling yields and new laws make 2025 a...
Recommended for you
Latest Features
A survey which spoke with 3,500 landlords, tenants and agents...
Does the Scottish situation resonate with landlords in the rest...
There's been an increase in reports of mould in homes...
Sponsored Content

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here